Government Revenues from Gambling | Page 5

Economist Testifies On the Negative “Spillover” Effects of Predatory Gambling

Government Revenues from Gambling, Lowering the Standard of Living for Ordinary Citizens, Regional Casinos

Economist Loretta Fairchild testified at a hearing in the Nebraska legislature in October 2011 to express her findings that the costs of predatory gambling significantly outweigh any benefits. She also notes that gambling “is one of a very small number of consumer items that economics considers as ‘special cases,’ because almost all types of gambling do have significant ‘spillovers’ on to people who don’t provide the gambling or use it, and these spillovers are mainly negative, harmful ones, on to families, friends and other businesses.”

Testimony of Economist Loretta Fairchild to Nebraska Legislature

Government Study Reveals the Massive Cost of Problem Gambling

Crime, Government Revenues from Gambling, Lotteries, Lowering the Standard of Living for Ordinary Citizens, Online Gambling, Public Health, Regional Casinos, Sports Betting, Studies

While government-sanctioned gambling is often trumpeted as a new source of revenue, a 2013 study shows shows the staggering cost of problem gambling. This national Australian report reveals that the social and economic cost of problem gambling could total up to $2.8 billion per year.

Cost of problem gambling could be as high as $2.8b- report

Lotteries Generate More Revenue Than Corporate Income Taxes in Some States

Government Revenues from Gambling, Lotteries, Lowering the Standard of Living for Ordinary Citizens, Online Gambling

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In this Reuters piece, David Cay Johnston examines the shift in 11 states that shows, lotteries, the most heavily taxed consumer product in America, generate more revenue than state corporate income taxes. For example, the Rhode Island Lottery netted the state more than $3 for each dollar of state corporate income tax in fiscal 2009. Johnston also spotlights how the increasing trend toward easy reliance on lotteries has not translated to increased revenue for states.

U.S. Lotteries and the State Taxman

North Carolina Community College Students Become “Collateral Damage”

Government Revenues from Gambling, Lowering the Standard of Living for Ordinary Citizens

The North Carolina House recently voted on a budget that will cut financial aid from lottery funds to low-income community college students. Since creating the state Lottery in 2005, lawmakers have “tinkered with the formula” that initially allocated 10 percent of half its net proceeds to need-based college scholarships.

Aid to North Carolina Students Cut to Repay Debts

West Virginia Legislature Votes to Fund State’s Racinos

Government Revenues from Gambling, Investigative Journalism, Lotteries, Lowering the Standard of Living for Ordinary Citizens, Regional Casinos

In March 2011, West Virginia’s State Legislature voted on a bill that will use $10 million from an existing lottery to fund the state’s racinos for 10 years. Del. Mitch Carmichael, of Jackson, called the bill “the most ‘ridiculous’ he’s seen in several years.”

“Why should we single out a particular industry, the gaming industry and the Greenbrier Hotel, to give them special $10 million giveaways from the people of West Virginia,” Carmichael asked. “I just think it sets the wrong priorities.”

West Virginia Legislature Votes to Fund Racinos with Public Money

Future Growth in Gambling Revenue Will Not Keep Pace With Tax Revenue or Spending

Government Revenues from Gambling, Lotteries, Online Gambling, Regional Casinos, Sports Betting, Studies

The slides below are from a presentation by the Rockefeller Institute of Government at the 2009 Stop Predatory Gambling Foundation Conference. It outlines recent national trends in gambling revenue, growth in gambling revenue compared to growth in tax revenue and expenditures, and points for consideration by policymakers.

Rockefeller Institute – Trends in Gambling Revenue to the States

New Hampshire Study Finds Proposed Casino Would Take Away Local Jobs and Lead to Higher Taxes for All

Economic Effects, Government Revenues from Gambling, Lowering the Standard of Living for Ordinary Citizens, Regional Casinos, Studies, Uncategorized

An independent New Hampshire Gambling Commission study found that bringing one casino to the state would take away seven existing local jobs for every 10 casino jobs created – yet another example how predatory gambling operators willfully exaggerate the lure of jobs to mislead public opinion. The same report showed one casino would raise $219 million in state revenue but the total social cost would be $287.7 million: a net drain of $68.7 million. Who do you think pays that tab?

NH Gambling Report 2010

Impact of Casinos on Retail Sales

Economic Effects, Government Revenues from Gambling, Studies

Taxable retail sales in Iowa cities without casinos grew more than five times faster than sales in cities with casinos, leading researchers to conclude, “the operation of a casino in a mid-size city, far from contributing to economic development, creates a measurable drain on the economy of the city.” Lori Fairchild, PhD, “Impact of Casinos on Retail Sales in Mid-Size Iowa Cities,” Great Plains Business & Economics Conference, Omaha Federal Reserve Bank, Oct. 28, 2005

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South Carolina Study Shows Households Earning Under $40K Make Up 54% of the Lottery’s Frequent Players

Government Revenues from Gambling, Lotteries, Lowering the Standard of Living for Ordinary Citizens, Studies

A review of demographic studies commissioned by the South Carolina Education Lottery showed: African-Americans made up 19% of the state’s adult population but accounted for almost 39% of frequent players; people in households earning under $40,000 accounted for 28% of the state’s population but made up 54% percent of frequent players; people with no high school diploma accounted for 8% of the state’s population and 21% of frequent players; and people whose highest educational achievement is a high school diploma or GED made up 25% of the total population and 34% percent of frequent players.

South Carolina Lottery Demographics

California Taxpayers Pay Even If They Don’t Play

Economic Effects, Government Revenues from Gambling, Lowering the Standard of Living for Ordinary Citizens, Public Health

Predatory gambling operators are fond of framing their scheme as a “voluntary tax.” Yet according to the California Attorney General’s 2006 study titled “Gambling in the Golden State”, problem and pathological gamblers cost California $1 billion per year, more than half what the state received in gambling revenues. Read the report below.

Gambling in the Golden State